Princess Auto

[Doggggboy]

That's funny...... The Kamloops one is on hwy1 and is next to the former peavey mart...... Perhaps a franchise requirement?

Maybe. If so it's working better for PA than PV.

 

[trevj]

Maybe. If so it's working better for PA than PV.

Yeah, no kidding. I had a distant relative (daughter of a cousin) who lost her job at the Kamloops Peavy when they cratered in.

As a bit of a funny side note, Peavy Mart had a reserved parking spot, with free charging for EV's. A Joker I know, found a charge port socket on Amazon, that fit nicely in to the little grill trim piece that is on the side of his dually-diesel F-350, so whenever he went there, he pulled in, plugged the cord in (which did nothing) and nobody ever batted an eye! LOL!

 

[Doggggboy]

Am wondering if the locations of Peavy Marts was planned specifically to be in concert to PA's, as the Kamloops PA was a few shops down from the (also) now closed Peavy Mart.

IIRC, Peaavy Mart as a Brand, was bought by the folks that ran the Co-Op stores out in the prairies. Shame to see it get run into the ground, they had a lot to offer the rural community...

I heard years ago that the reason there was almost always a Burger King across the Street from a McDonalds was that even though they were competitors, they had learned to trust each others' market research. If McDonalds thought they could succeed there, BK probably could too.
Maybe PA and PV did the same.
Then again, it could be zoning

 

[Chicken lights]

I heard years ago that the reason there was almost always a Burger King across the Street from a McDonalds was that even though they were competitors, they had learned to trust each others' market research. If McDonalds thought they could succeed there, BK probably could too.
Maybe PA and PV did the same.
Then again, it could be zoning

I've heard that some franchise owners own enough stores, they run some at a loss. Likely for tax reasons, but anyway just because you see a franchise doesn't mean it's turning a profit

 

[historicalarms]

IIRC, Peaavy Mart as a Brand, was bought by the folks that ran the Co-Op stores out in the prairies. Shame to see it get run into the ground, they had a lot to offer the rural community...

They were owned and run by a husband-wife team here in central Ab. Local word is that the demise was a result of an Ontario expansion that didnt get the support that was needed to service the dept.

 

[Doggggboy]

I've heard that some franchise owners own enough stores, they run some at a loss. Likely for tax reasons, but anyway just because you see a franchise doesn't mean it's turning a profit

If you can't make money off your McDonald's franchise then you probably took your business lessons from Trump's casino school

 

[Susquatch]

Likely for tax reasons

This is an urban legend Dave. NOBODY operates anything at a loss for tax reasons except organized crime. They call it money laundering.

 

[Chicken lights]

If you can't make money off your McDonald's franchise then you probably took your business lessons from Trump's casino school

Don't shoot the messenger
A friend of mine owns the local Harvey's/Swiss chalet who was telling me about it. I'm with you, I didn't believe it, you mean to tell me you pay staff, order in food, keep it running but at a loss? He said yes if you own 99 McDonald's/Tim's/whatever they don't care if some are money losers. He said then it makes it hard for guys like him owning one to compete, because he needs to make money to stay open, if he's competing with a money loser.

 

[Chicken lights]

This is an urban legend Dave. NOBODY operates anything at a loss for tax reasons except organized crime. They call it money laundering.

Eumm... large trucking companies will. There's a fairly large one that's teetering on bankruptcy that would undercut freight so competitors wouldn't get the work. I don't know the exact numbers but the fleet might have 10% working at a loss but the other 90% can cover it.

There are groups of truckers that will flood a segment of the industry with cheap trucks, until the established companies fold and move out. Then raise the prices back up.

I don't know if that meets your organized crime criteria but it is a racket and it does happen

 

[Martin w]

Eumm... large trucking companies will. There's a fairly large one that's teetering on bankruptcy that would undercut freight so competitors wouldn't get the work. I don't know the exact numbers but the fleet might have 10% working at a loss but the other 90% can cover it.

There are groups of truckers that will flood a segment of the industry with cheap trucks, until the established companies fold and move out. Then raise the prices back up.

I don't know if that meets your organized crime criteria but it is a racket and it does happen

That’s why Canada Geese never fly south J B Hunt said he can haul ‘em cheaper Old Joke from the nineties. Lol

 

[Susquatch]

I don't know if that meets your organized crime criteria but it is a racket and it does happen

Not really organized crime in the sense I meant it. I'm sure the neighbour shop didn't like it though.

What you describe happens all the time. But it isn't done for tax reasons. It's done to maximize long term profits. Lots of business is done at a loss for many reasons. Sometimes it's to retain good people, sometimes it's to weather business cycles, sometimes it's a loss leader, sometimes it's because it costs less in the long run to keep the doors open when it doesn't make sense to shut down and then startup again later.

Tax writeoffs can help during these rough times by reducing the losses, but they are never the reason to do it. Nobody in their right mind reduces more in overall profit than they can save on taxes.

 

[Susquatch]

Don't shoot the messenger
A friend of mine owns the local Harvey's/Swiss chalet who was telling me about it. I'm with you, I didn't believe it, you mean to tell me you pay staff, order in food, keep it running but at a loss? He said yes if you own 99 McDonald's/Tim's/whatever they don't care if some are money losers. He said then it makes it hard for guys like him owning one to compete, because he needs to make money to stay open, if he's competing with a money loser.

This is called a loss leader. It's one of the ones I mentioned. Companies do this with some products and/or some stores for competitive, or presence, or marketing, or to hit minimum sales volumes. For example, a license may require a minimum volume to maintain it. So you sell some stuff at a loss in order to hit the volume target. Same could apply for minimum orders.

None of these are for tax purposes.

 

[Chicken lights]

This is called a loss leader. It's one of the ones I mentioned. Companies do this with some products and/or some stores for competitive, or presence, or marketing, or to hit minimum sales volumes. For example, a license may require a minimum volume to maintain it. So you sell some stuff at a loss in order to hit the volume target. Same could apply for minimum orders.

None of these are for tax purposes.

If your business makes less profit, it pays less taxes (roughly) correct?

 

[Susquatch]

If your business makes less profit, it pays less taxes (roughly) correct?

Usually yes. For discussion purposes here, it's prolly best to think about taxes as a percentage you pay on net income (income after costs). Technically, profit is the money you get to keep after costs and taxes.

Also, the more net income, the higher the percent taxes.

To rephrase and answer your question, the less net income you have, the less taxes you pay.

 

[Chicken lights]

Usually yes. For discussion purposes here, it's prolly best to think about taxes as a percentage of income after costs that you pay. In other words yes, a percent of profit.

The more profit, the higher the percent taxes. But there are many factors that complicate that.

So if you own 10 stores - 5 make a profit, 5 don't, that's better, tax wise, than if all 10 make a profit, correct?

 

[Susquatch]

So if you own 10 stores - 5 make a profit, 5 don't, that's better, tax wise, than if all 10 make a profit, correct?

Yes, but they also make less total profit and the profit loss is more than the tax savings. So it's a net reduced profit for the whole company.

 

[Susquatch]

Give me a few minutes to craft an example.